Although many federal employees believe that they must wait until age 59 ½ before taking penalty-free withdrawals from their TSP, that isn’t the case. In fact, there are a few different ways that federal employees can take withdrawals before 59 ½ and avoid the 10 percent penalty usually applied to early distributions. In this article,Continue reading “Withdrawing From Your TSP Early”
Tag Archives: veterans
Does Your Agency Match Count Toward Your TSP Contribution Limit?
One of the biggest perks of the Thrift Savings Plan (TSP) is the generous government match. Yet, there is some confusion around whether the agency’s match counts toward the annual employee contribution limit set by the IRS. This confusion probably stems from the fact that there are two limits imposed on qualified defined contribution plans,Continue reading “Does Your Agency Match Count Toward Your TSP Contribution Limit?”
The TSP vs. the IRA: What’s the Difference?
The Thrift Savings Plan (TSP) and the Individual Retirement Arrangement (IRA) share many similarities, such as the option to fund with pre-tax (traditional) or after-tax dollars (Roths); having penalties for early withdrawals and failing to take required minimum distributions beginning at age 72. However, there are some important distinctions between the two accounts, such asContinue reading “The TSP vs. the IRA: What’s the Difference?”
College Tuition Waiver for Veteran Dependents at a Glance
The College Fee Waiver for Veteran Dependents waives the tuition and fees at any State of California Community College, California State University, or University of California campus. This program covers tuition and student service fees; it does not cover campus-based fees, books, parking, or room and board. Furthermore, the Waiver is only applied to state-supportedContinue reading “College Tuition Waiver for Veteran Dependents at a Glance”
Which Thrift Savings Plan Is Right For You? Roth Vs. Traditional
Having the choice of contributing to a Traditional TSP or a Roth TSP provides you with a significant tax planning option—but it does force you to make another financial planning decision. Many people find making this decision a challenge because there’s no one right answer for everyone, and it depends upon several factors. What’s NotContinue reading “Which Thrift Savings Plan Is Right For You? Roth Vs. Traditional”
Three Advantages of the TSP
The Thrift Savings Plan (TSP) is designed to closely resemble the private sector’s 401(k). Although the TSP is similar to the 401(k), its additional features, including low fees, broad diversification, and a generous government match, make it superior to most 401(k)s and a perfect wealth-building vehicle for Federal Employees. Here’s a closer look the threeContinue reading “Three Advantages of the TSP”